The benchmark KOSPI index dipped under the 5,000-point mark for the first time in nine months after shedding more than 8 percent. The Korea Exchange paused trading early in the session as hardware giants experienced double-digit declines. The broad retreat also weighed on the automotive and clean energy sectors, with companies like Hyundai Motor and LG Energy Solution retreating alongside the chip industry.
Key points
The sharp domestic downturn tracked the worst single-day session in over a year for Ameri…: The sharp domestic downturn tracked the worst single-day session in over a year for American equity markets.
Policy uncertainties regarding artificial intelligence arose following sweeping Democrati…: Policy uncertainties regarding artificial intelligence arose following sweeping Democratic Party victories in U.S. midterm elections.
Spillover effects extended beyond chipmakers to hit automotive and battery producers like…: Spillover effects extended beyond chipmakers to hit automotive and battery producers like Hyundai Motor and Kia Corp.
Sources checked by our analysis pipeline: 1
SEOUL, Nov 6 : South Korea's benchmark KOSPI stock index plunged more than 8 per cent in early trade on Friday, triggering a circuit breaker as a sell-off led by chip and technology stocks pushed the index below the 5,000-point mark for the first time in nine months.
The Korea Exchange (KRX) activated a 20-minute circuit breaker at 9:03 a.m. (0003 GMT), temporarily halting all stock and derivatives trading.
The benchmark KOSPI was down around 500 points, or 8.6 per cent, at 4,923.47 as of 0026 GMT.
"It is time for correction, but we feel that there may be some overreaction to the outcome of the midterm election," said Jun Kwang-woo, chairman of the Institute for Global Economics, a financial thinktank in Seoul,
"Hopefully we will stabilise very soon because after all, we understand that the speed of building AI infrastructure, especially data centres may slow down a bit because of the number of concerns in many states including Texas," said Jun, who is a former chairman of South Korea's National Pension Service.
Prime Minister Mark Carney is establishing the Canada Strong Fund to tackle weak domestic productivity and prevent homegrown startups from relocating to international hubs. The initiative operates under a strictly domestic mandate, directing capital into local artificial intelligence, technology companies, and federal energy infrastructure. Ultimately, officials seek to mobilize C$1 trillion in combined public and private investment over a five-year horizon.
Domestic equities are poised to halt their six-day winning streak amid intense pressure from an overnight plunge across Wall Street. A major global sell-off is shaking investor sentiment across Asian bourses, leading to broad-based declines and market interruptions. Despite this international turbulence, domestic technical indicators suggest underlying market strength that could limit the depth of the initial pullback.
Investor anxiety intensified globally following concerns over massive artificial intelligence expenditures and potential regulatory curbs on data-center development after the U.S. midterm elections. The resulting tech downturn pushed major American indexes into correction territory, immediately triggering severe cross-border sell-offs for leading regional suppliers and hardware manufacturers across Asia.